Real Estate Update: January '21 Sees Historic Numbers in Residential Sales

1

00:00:06,590 --> 00:00:08,430

Welcome to the Durango real estate update.

2

00:00:08,430 --> 00:00:11,930

My name is Dan Korman, broker

owner of Alpenglow Properties,

3

00:00:11,930 --> 00:00:14,460

a full service real estate

firm located right here

4

00:00:14,460 --> 00:00:17,200

in downtown Durango, Colorado.

5

00:00:17,200 --> 00:00:20,660

When I did my January

recap in February of 2020,

6

00:00:20,660 --> 00:00:22,660

exactly one year ago today,

7

00:00:22,660 --> 00:00:24,440

I told you that there were more listings

8

00:00:24,440 --> 00:00:26,300

on the market than ever before.

9

00:00:26,300 --> 00:00:28,620

That the median price

for a single family home

10

00:00:28,620 --> 00:00:31,810

was around $400,000 for

the first time in years.

11

00:00:31,810 --> 00:00:33,090

And emphatically stated

12

00:00:33,090 --> 00:00:35,500

that it was the best

time to buy real estate.

13

00:00:35,500 --> 00:00:38,120

Well, here's a clip from that video.

14

00:00:38,120 --> 00:00:39,710

If you've been thinking

about pulling the trigger

15

00:00:39,710 --> 00:00:42,410

on something, it seemingly the

right time to call your agent

16

00:00:42,410 --> 00:00:43,940

and make that offer.

17

00:00:43,940 --> 00:00:45,960

The drops in average

and median home prices

18

00:00:45,960 --> 00:00:48,820

are most likely attributed to

a higher listing inventory,

19

00:00:48,820 --> 00:00:52,020

continuously low mortgage rates,

a bit of winter stagnation,

20

00:00:52,020 --> 00:00:54,210

as well as uncertainty

within our geopolitical

21

00:00:54,210 --> 00:00:56,100

and economic landscapes.

22

00:00:56,100 --> 00:00:57,500

I think we can all agree it's nice

23

00:00:57,500 --> 00:00:59,670

to have some normalcy

return to the market,

24

00:00:59,670 --> 00:01:02,360

but I don't foresee the

lag lasting through March

25

00:01:02,360 --> 00:01:03,700

as buyers are starting to emerge

26

00:01:03,700 --> 00:01:05,401

from their winter activities.

27

00:01:05,401 --> 00:01:08,660

My how things have changed in 12 months.

28

00:01:08,660 --> 00:01:11,520

Whether you look at the national

or local real estate news,

29

00:01:11,520 --> 00:01:13,680

there are only a couple

of headlines driving most

30

00:01:13,680 --> 00:01:15,160

of the conversations.

31

00:01:15,160 --> 00:01:18,060

National housing inventory

is at an all time low,

32

00:01:18,060 --> 00:01:20,540

mortgage rates are at an all time low,

33

00:01:20,540 --> 00:01:23,500

and apparently you should

have invested in GameStop.

34

00:01:23,500 --> 00:01:26,460

Well, overall, even our local

little real estate market

35

00:01:26,460 --> 00:01:29,590

landscape is the complete

opposite picture as what I painted

36

00:01:29,590 --> 00:01:32,650

in that video shot only

12 long months ago.

37

00:01:32,650 --> 00:01:35,250

Fast forward to 2021,

and our active listings

38

00:01:35,250 --> 00:01:36,290

are at all time lows,

39

00:01:36,290 --> 00:01:39,630

down 30% compared to

the same time last year.

40

00:01:39,630 --> 00:01:41,681

We have the highest amount

of pending transactions

41

00:01:41,681 --> 00:01:44,790

in the history of the MLS

for the month of January,

42

00:01:44,790 --> 00:01:46,230

as well as a record breaking amount

43

00:01:46,230 --> 00:01:48,020

of single-family home units sold

44

00:01:48,020 --> 00:01:50,190

in Durango year-to-date as well.

45

00:01:50,190 --> 00:01:52,040

If that's clear as mud, simply put,

46

00:01:52,040 --> 00:01:54,120

the available housing stock is way down,

47

00:01:54,120 --> 00:01:55,050

and the number of sales

48

00:01:55,050 --> 00:01:57,420

are up with pricing reaching

uncomfortable levels

49

00:01:57,420 --> 00:01:58,623

in some instances.

50

00:01:59,490 --> 00:02:01,490

I'm hoping that over the

next couple of months,

51

00:02:01,490 --> 00:02:02,900

I'll be able to come on the show

52

00:02:02,900 --> 00:02:04,840

and talk about inventory increases

53

00:02:04,840 --> 00:02:07,160

that would relieve pressure on pricing.

54

00:02:07,160 --> 00:02:09,030

But until then, let's focus on something

55

00:02:09,030 --> 00:02:10,790

a little more fun, shall we?

56

00:02:10,790 --> 00:02:12,680

How about commercial real estate?

57

00:02:12,680 --> 00:02:14,500

Commercial property leasing and sales

58

00:02:14,500 --> 00:02:16,760

are important economic

drivers for our county

59

00:02:16,760 --> 00:02:18,410

and the nation at large.

60

00:02:18,410 --> 00:02:19,670

There are many different facets

61

00:02:19,670 --> 00:02:21,210

of the commercial real estate market,

62

00:02:21,210 --> 00:02:24,630

including but not limited

to owner occupied space,

63

00:02:24,630 --> 00:02:27,570

long-term leasehold

investments, vacant land,

64

00:02:27,570 --> 00:02:29,410

business opportunities for sale with

65

00:02:29,410 --> 00:02:32,180

or without the real estate

attached, redevelopment,

66

00:02:32,180 --> 00:02:34,484

leasing and the list

goes on and on and on.

67

00:02:34,484 --> 00:02:37,260

La Plata county's existing

market can be broken

68

00:02:37,260 --> 00:02:40,730

into four major

categories: office, retail,

69

00:02:40,730 --> 00:02:43,038

light industrial and multi-family.

70

00:02:43,038 --> 00:02:45,140

The lack of industrial space here

71

00:02:45,140 --> 00:02:46,840

in La Plata county is a pain point

72

00:02:46,840 --> 00:02:48,000

and has been for a while.

73

00:02:48,000 --> 00:02:50,640

And many local entities have

been trying to alleviate

74

00:02:50,640 --> 00:02:53,410

since Bodo Park was completely absorbed.

75

00:02:53,410 --> 00:02:56,010

Given the high demand for

space to bring jobs in sectors

76

00:02:56,010 --> 00:02:58,210

such as manufacturing, local groups

77

00:02:58,210 --> 00:02:59,950

like the Economic Development Alliance

78

00:02:59,950 --> 00:03:02,640

have taken upon themselves

to help identify areas

79

00:03:02,640 --> 00:03:05,340

that would naturally be a path for growth.

80

00:03:05,340 --> 00:03:07,610

One of these areas is La Posta Road.

81

00:03:07,610 --> 00:03:10,140

And with the recent

acquisition of a 90 acre parcel

82

00:03:10,140 --> 00:03:12,080

formerly known as the Carter property,

83

00:03:12,080 --> 00:03:14,300

it's looking like some

wheels are set in motion

84

00:03:14,300 --> 00:03:17,750

for a new industrial park to

be redeveloped down the road.

85

00:03:17,750 --> 00:03:19,830

Hopefully in the near future.

86

00:03:19,830 --> 00:03:22,520

Juxtapose to our near

zero feet of industrial

87

00:03:22,520 --> 00:03:24,840

and warehouse space

available is an abundance

88

00:03:24,840 --> 00:03:27,150

of office and retail space.

89

00:03:27,150 --> 00:03:29,210

There is around 200,000 square feet

90

00:03:29,210 --> 00:03:31,680

of vacant commercial space

in La Plata County right now.

91

00:03:31,680 --> 00:03:33,980

And that's not including

off-market properties such

92

00:03:33,980 --> 00:03:36,150

as the building formerly

known as Worldpay,

93

00:03:36,150 --> 00:03:38,180

or several government

owned parcels scattered

94

00:03:38,180 --> 00:03:39,470

around the area.

95

00:03:39,470 --> 00:03:42,130

These vacancies are creating ripples

96

00:03:42,130 --> 00:03:43,975

in the sectors that actually trickle down

97

00:03:43,975 --> 00:03:46,220

through small businesses, with one

98

00:03:46,220 --> 00:03:49,040

of the hardest hit being

the restaurants in our area.

99

00:03:49,040 --> 00:03:51,350

So it's anyone's guess

as to when we'll be able

100

00:03:51,350 --> 00:03:53,610

to find that normal vacancy rate again,

101

00:03:53,610 --> 00:03:55,170

but regardless of these points,

102

00:03:55,170 --> 00:03:57,040

Durango's extremely resilient,

103

00:03:57,040 --> 00:04:00,118

and it's been an incredible

path to see locals rallying

104

00:04:00,118 --> 00:04:03,400

behind the business

community over the last year.

105

00:04:03,400 --> 00:04:04,460

I can say with confidence

106

00:04:04,460 --> 00:04:06,550

that I'd rather be nowhere

else in the world right now

107

00:04:06,550 --> 00:04:08,700

as we all ride out the storm together.

108

00:04:08,700 --> 00:04:11,630

With amazing opportunities like

workforce housing programs,

109

00:04:11,630 --> 00:04:14,170

urban renewal authority

development projects,

110

00:04:14,170 --> 00:04:16,840

and new areas to be

developed on the horizon,

111

00:04:16,840 --> 00:04:18,560

there has never been a more exciting time

112

00:04:18,560 --> 00:04:20,203

to be in real estate in Durango.

113

00:04:21,066 --> 00:04:23,460

It's been a pleasure sharing this month

114

00:04:23,460 --> 00:04:26,170

and all my past months real

estate updates with you.

115

00:04:26,170 --> 00:04:27,100

Please feel free to reach

116

00:04:27,100 --> 00:04:31,490

out anytime via email at

Dan@AlpenglowProperties.com,

117

00:04:31,490 --> 00:04:35,070

or on any of our social media

handles @DurangoBrokers.

118

00:04:35,070 --> 00:04:38,040

Stay vigilant in your house

hunts, find that perfect space

119

00:04:38,040 --> 00:04:40,590

for your business, and

be kind to each other.

120

00:04:40,590 --> 00:04:41,740

Thank you for watching.

‍